FairPlay has urged South Africa’s finance minister Enoch Godongwana to consider removing the 15% value-added tax (VAT) from locally produced chicken portions, stressing the urgency to make chicken more affordable for low-income households
South Africa’s finance minister Enoch Godongwana has asked for suggestions on things he could include in the budget speech later this month.
FairPlay has advised him to remove the 15% value added tax (VAT) from the local chicken portions most consumed by low-income households.
In a letter to Minister Godongwana, FairPlay founder Francois Baird said the movement had called for “VAT-free chicken” since 2018, and the need was now even more urgent. Food prices and input costs for locally grown chicken had increased substantially.
“Although the rate of increase has moderated in the past year, food prices remain high. The result is that millions of South Africans cannot afford a nutritious diet, even when food is available.”
Baird said chicken was an important dietary requirement for children.
“You will be aware of the finding that more than a quarter of our children are afflicted by stunting, which is caused by malnutrition. Stunting affects these children physically and mentally for the rest of their lives – it destroys their future.
“We must keep chicken affordable for low-income households, and especially for those with children. VAT-free South African bone-in chicken would enable an immediate reduction in the price of the chicken portions most consumed by these households,” Baird said.
“On behalf of South Africa’s mothers and children, I urge you to make bone-in South African chicken VAT-free,” he concluded.
